Farm groups and beef processors have agreed to engage in talks over the next two weeks to try and reach agreement in the dispute which saw farmers protesting outside factory gates on Monday.

The decision came at the end of three-and-a-half-hours of meetings chaired by Minister for Agriculture Simon Coveney. The discussions were attended by all of the main stakeholders in the industry, including Bord Bia and representatives from the two largest buyers of Irish beef, by volume, Tesco and McDonalds

Speaking after the meeting, Minister Coveney said: “I am delighted that all of the participants in the forum endorsed the establishment of Producer Organisations in the beef sector. Providing for Producer Organisations in the sectors such as beef was a strong focus of mine in the re-negotiated CAP last year. It is clear to me that they represent the best opportunity to re-balance the relationship in the supply chain between producers and processors by empowering farmers to organise collectively for the purposes of negotiating on prices with processors.”

The discussions will take place under an independent chair, Michael Dowling.

Farmers claim the price paid for their beef is €3.50 per head less here than in the UK, or €1 per kilo.

Speaking after this evening's meeting of the Beef Forum, IFA President Eddie Downey said unless the factories immediately increase the price to reflect the improved market returns in the UK, and address the specification issues, the Forum will have failed.